SouthernGuy's Debt Free Journey

SouthernGuy

Good afternoon all,

Well I thought I'd beat the Monday blues today by paying another £100 off CC1 bringing it down to £1700. I was hoping to get it down to £1500 before next pay day but I'll have to see what I have left after car insurance later this week. next pay day is now less than 2 weeks away

It's also my birthday this week so am hoping to receive a little bit of cash that I can keep aside to be able to treat myself next month without tapping into my normal income. Hopefully next month there won't be any big outgoings (like car insurance) so I'll be able to throw a large amount at the debt.

Thanks for reading everyone.

Have a good day.

SouthernGuy

Ok everyone, advice needed please.

I've just phoned the bank who my loan is with and asked for the current balance and settlement options.
I spoke to a very helpful lady who calculated the interest I'd pay for early repayment and also the saving I'd make on interest for clearing it now vs letting it run til end of term.

The settlement figure today would be £824.85 (valid til 9th June). That would include an early repayment charge of £12.85 but would mean I'd make a saving on interest of £16.85 til the end of the loan (Sept or Oct). I have a regular payment going out for it next week of £139 so the balance payable by 9th June to settle it would be reduced by that amount.

From a logical and moneysaving mind point of view it makes sense that instead of paying money off my interest free CC1 next month I clear the loan. That would then save me £16.85 interest and also free up £139 a month to then continue to pay off the CC's.
The trouble is because I started the loan in 2009 and have just made a monthly payment to it of £139 I psychologically don't see it as a proper debt (I hope you get what I mean) so I'm worried that I won't get the high I get from seeing my CC1 reduce. It doesn't show up on my online banking like all my other balances, just my Noddle report.

What would you do?!?

Thanks in advance.

wannabe_credit_free

I would pay off the loan and save on the interest. Plus its another debt you can say goodbye to.

I know what you mean by , missing the high, I'm currently stoozing and am getting a high from receiving 3% interest on a BT transfer. Only paying enough monthly payment to ensure the BT will be paid off in full, 1 month before the 0% deal ends....

Making some money from the banks for a change, loving it....:j

nellis10

Good Luck Southern Guy! I agree get rid of the load and use the newly found £139 to get rid of the CC even faster! That way you ahve 2 debts gone in a short pace of time!

I'm like you, I didn't see my loans as "debt" as they were a monthly payment and for "proper purposes" - Car Loan and a Divorce Loan (To pay solicitors up front). Now I've had my lightbulb moment I want to get rid of those 2 ASAP!!

SouthernGuy

Thanks guys, So great to have the support from fellow DFW's

I have decided if possible to clear the loan next month instead of paying CC1 down further. If I have anything left over I'll throw it at CC1 otherwise it will just receive it's minimum payment until the following payday.

At least then I'll only have 2 seperate outstanding debts and the loan will be fully gone :T :j

SouthernGuy

Brief update.

Had a great birthday and managed to get the cost of car insurance down by £60 which was nice.

Just waiting til payday next week and then will hopefully clear the loan

nellis10

SouthernGuy wrote: »

Brief update.

Had a great birthday and managed to get the cost of car insurance down by £60 which was nice.

Just waiting til payday next week and then will hopefully clear the loan

Happy belated Birthday! :beer:

SouthernGuy

Evening all, I hope everyone is ok.

I've just phoned my loan lender as my monthly payment went through yesterday so I wanted to get the new amended exact settlement figure taking that payment into account ready to pay it off on Friday (Pay day ).

The total stands at £685.78 exactly. I can't wait to phone up Friday and clear it

wannabe_credit_free

Well done. Hope you had a great birthday...:beer:

GunWharf

Good luck on your Journey, your doing well.

All the best from the Captain on the South Coast